L.I.C’s “Golden Jubilee Offering” L.I.C’s “Golden Jubilee Offering”
NEW BIMA GOLD (179)
Intro features benefits illustrations
Intro features benefits illustrations
NEW BIMA GOLD (179)
Intro features benefits illustrations
NEW BIMA GOLD (179)
Who can avail of this plan ? All male & female between 14 - 57 years Are policy terms flexible ? Yes, The options are 12, 16 or 20 years. Upto what age is risk cover available ? The maximum age at maturity is 75 years. How much sum assured can be chosen ? Minimum sum assured : Rs.50,000. Maximum sum assured : No limit.
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NEW BIMA GOLD (179)
What are the modes of payment? Yly / Hly / Qly / Mly / SSS
Non-medical schemes NMS/NMG applicable
Combines the benefit of Bima Gold & Bima Kiran Free risk cover ceases at age 75 Yet another GOLD from LIC!!! Open ended scheme w.e.f. 4th Sep 2006
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NEW BIMA GOLD (179)
For a policy of Rs. 2,00,000 & above, you get a rebate of Rs. 7.50 per thousandrebate of Rs. 7.50 per thousand sum assured.
For a policy of Rs. 1,00,000 to 1,95,000 you get a rebate of Rs. 5 per thousandrebate of Rs. 5 per thousand sum assured.
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NEW BIMA GOLD (179)
Death CoverDeath Cover : :
On unfortunate death of the life assured, during the term of the policy, an amount equal to Sum Assured under the Basic Plan is paid provided the life cover is in force.
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NEW BIMA GOLD (179)
SURVIVAL BENEFITS:-
Policy
Term
% of Sum Assured payable
At the end of years
12 15% 4th and 8th years
16 15% 4th, 8th and 12th years
20 10% 4th,8th, 12th and 16th years
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NEW BIMA GOLD (179)
Maturity BenefitMaturity Benefit
Total amount of premiums paid (excluding extra/optional rider premiums) plus plus LA Less survival benefits paid
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NEW BIMA GOLD (179)
Auto Cover (Premium Auto Cover (Premium Holiday)Holiday)If 2 years’ premium has been paid, and subsequent premiums not paid, full death cover shall be continue for a period of 2 years from date of First Unpaid Premium. This period of 2 years is called Auto Cover period.
During the Auto Cover period, one or more installments of premium can be paid with interest but without revival requirements and the Auto Cover period shall be available for 2 years from the revised date of FUP.
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NEW BIMA GOLD (179)
Intro features benefits illustrations
NEW BIMA GOLD (179)
Loyalty Addition? Why is it ONE TIME?
Why no share of profits for Death Claims?
Will there be profits atleast equal to 75/20?
It is only a “return of premium” term insurance with money back
MISCONCEPTIONS
What is loyalty What is loyalty addition?addition? How much will How much will it be?it be?
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NEW BIMA GOLD (179)
Loyalty AdditionLoyalty Addition
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NEW BIMA GOLD (179)
With profitWith profit• Identical to Identical to bonusbonus• 165, 174, 165, 174, 179179
Without Without profitprofit• Meager Meager amount amount • 111, 150111, 150
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This is a with-profits Plan and the policy participates in the Corporation’s with-profit assurance business
Share of profits in form of loyalty addition (one-time) is a payable on maturity.
NEW BIMA GOLD (179)
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There is a misconception that Loyalty There is a misconception that Loyalty addition is just a little sweetener and addition is just a little sweetener and the main growth comes from bonus / the main growth comes from bonus / G.A.G.A.
But it will not be so in the case of New But it will not be so in the case of New Bima Gold. Actuarial analysis will show Bima Gold. Actuarial analysis will show that the actual L.A. that can be paid that the actual L.A. that can be paid will not be less than the total regular will not be less than the total regular bonus payablebonus payable on death claim, on death claim, surrender or maturity.surrender or maturity.In fact the policy holder will stand to In fact the policy holder will stand to gain more due to this conceptgain more due to this concept
NEW BIMA GOLD (179)
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Reversionary bonus is declared after Reversionary bonus is declared after assessment of surplus.assessment of surplus.
On this surplus first a tax of 12.5% + 10% On this surplus first a tax of 12.5% + 10% surcharge on tax and 2% educational cess, i.e. surcharge on tax and 2% educational cess, i.e. a total of 14% has to be paid.a total of 14% has to be paid.
Thereafter 5% is the government shareThereafter 5% is the government share
Then there is also a Solvency Margin provision Then there is also a Solvency Margin provision to be madeto be made
The remainder is then distributed as bonus to The remainder is then distributed as bonus to the policy holdersthe policy holders
NEW BIMA GOLD (179)
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Loyalty Additions and Final Addition Loyalty Additions and Final Addition Bonuses are not based on assessment of Bonuses are not based on assessment of surplus.surplus.
Hence there is NO TAX, NO GOVERNMENT Hence there is NO TAX, NO GOVERNMENT SHARE AND NO SOLVENCY MARGIN SHARE AND NO SOLVENCY MARGIN PROVISION to be made.PROVISION to be made.
The result naturally is substantially The result naturally is substantially higher benefithigher benefit to the policy holder to the policy holder
NEW BIMA GOLD (179)
INSURANCE PREMIUM
RISK INVESTMENT PREMIUM
PREMIUM
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NEW BIMA GOLD (179)
How much Loyalty Addition? Age: 35 Term: 20 years S.A.: 5 lakhs
Plan
Premium
Risk prem Balance
With profit
Bonus rate
T.164 2306 2306 nil No -----
T.75
32,319 “ 30,013 YES 410000
T.179 19549 “ 17243 YES ?
235552
LOYALTY ADDITION RATES (likely)
TERM PER 1000 SA12 400
16 500
20 600Intro features benefits illustrations
NEW BIMA GOLD (179)
2 TYPES OF CUSTOMERS
FIRST- CLASS OTHER CUSTOMERS CUSTOMERS
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NEW BIMA GOLD (179)HOW TO POSITION THE PRODUCT ?
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NEW BIMA GOLD (179)
How to convince them ?
How to win over the sale ?
FIRST CLASS CUSTOMERS
ILLUSTRATION: AGE 30 179/16 5 LAKHS
YEAR PRM IT REBATE
NET
PRM
SUR
BENEFIT
2006 18408 5522 12886
2007 18408 5522 12886
2008 18408 5522 12886
2009 18408 5522 12886
2010 51544 50000
MONEY LOCKED WITH LIC IS VERY LESS
ILLUSTRATION: AGE 30 179/16 5 LAKHS
YEAR PRM IT REBATE
NET
PRM
SUR
BENEFIT
2010 18408 5522 12886
2011 18408 5522 12886
2012 18408 5522 12886
2013 18408 5522 12886
2014 51544 50000
MONEY LOCKED WITH LIC IS VERY LESS
ILLUSTRATION: AGE 30 179/16 5 LAKHS
YEAR PRM IT REBATE
NET
PRM
SUR
BENEFIT
2014 18408 5522 12886
2015 18408 5522 12886
2016 18408 5522 12886
2017 18408 5522 12886
2018 51544 50000
MONEY LOCKED WITH LIC IS VERY LESS
ILLUSTRATION: AGE 30 179/16 5 LAKHS
YEAR PRM IT REBATE
NET
PRM
MATURITY
BENEFIT
2018 18408 5522 12886
2019 18408 5522 12886
2020 18408 5522 12886
2021 18408 5522 12886
2022 51544 158160+L.A.
MONEY LOCKED WITH LIC IS VERY LESS
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NEW BIMA GOLD (179)
How to convince customers who are otherwise not comfortable ?
How to ensure policy doesn’t lapse?
OTHER CUSTOMERS
How to save your club membership?
AUTO COVER
Age 35, Term 20 Yr., S.A.Rs.5 Lakhs
Year Premia Revival Amt S B balance
1 st 19549
2nd 19549
3rd unpaid
4th unpaid 44005 50000 5995
5th 13554
6th 19549
7th unpaid
8th unpaid 44005 50000 5995
9th 13554
10th 19549
Year Premia Revival Amt S B Balance
11th unpaid
12th unpaid 44005 50000 5995
13th 13554
14th 19549
15th unpaid
16th unpaid 44005 50000 5995
17th 13554
18th 19549
19th unpaid
20th unpaid 44005 1,80,980(Guarantee)
1,36,975+3,00,000
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NEW BIMA GOLD (179)STRENGTH OF NEW BIMA GOLD
Realize the true potential of our new BIMA GOLD with ILLUSTRATIONS
1.15 Lakhs YLY PREMIUM 7335 2 Lakhs YLY PREMIUM 7363
5 23000 4 20000
10 23000 8 20000
12 20000
16 20000
20 46000+94300=140300 20 (143260-80000)+120000=183260
5.14 (without tax) 8.52 (without tax)
10.72 (with tax) 14.61 (with tax)
75/20 179/20
Yield Yield
15 23000
ILLUSTRATION – 1 AGE 30 YEARS
ILLUSTRATION – 2 AGE 35 YEARS
1.20 Lakhs YLY PREMIUM 8000 2 Lakhs YLY PREMIUM 8020
5 24000 4 20000
10 24000 8 20000
12 20000
16 20000
20 48000+98400=146400 20 (156400-80000)+120000=196400
4.73 (without tax) 7.74 (without tax)
10.26 (with tax) 13.47 (with tax)Yield Yield
75/20 179/20
15 24000
ILLUSTRATION – 3 AGE 40 YEARS
1.30 Lakhs YLY PREMIUM 9000 2 Lakhs YLY PREMIUM 9039
5 26000 4 20000
10 26000 8 20000
12 20000
16 20000
20 52000+106600=158600 20 (176780-80000)+120000=216780
4.08 (without tax) 6.78 (without tax)
9.53 (with tax) 12.10 (with tax)
15 26000
Yield Yield
75/20 179/20
ILLUSTRATION – 4 AGE 45 YEARS
1.40 Lakhs YLY PREMIUM 10400 2 Lakhs YLY PREMIUM 10489
5 28000 4 20000
10 28000 8 20000
12 20000
16 20000
20 56000+114800=170800 20 (205780-80000)+120000=245780
3.14 (without tax) 5.77 (without tax)
8.49 (with tax) 10.71 (with tax)Yield Yield
75/20 179/20
15 28000
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NEW BIMA GOLD (179)
Loyalty Addition? Why is it ONE TIME? Loyalty Addition (with profit) is a beauty which is paid on the date of maturity just like FAB
Why no share of profits for Death Claims? FAB is not given for death claims in money back plans.
Will there be profits atleast equal to 75/20? No doubt. It could be even more than that.
It is only “return of premium” term insurance with money back It is a blend of Endowment, Money Back, New Janaraksha and Bima Kiran
MISCONCEPTIONS & REALITY